ORD CC 12/18/79 - Equipment acquisitionORDINANCE NO. 79 -16
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE,
TEXAS, AUTHORIZING THE ISSUANCE OF ONE (1) "CITY OF HUNTSVILLE,
TEXAS, EQUIPMENT ACQUISITION CERTIFICATE OF OBLIGATION ",
DATED IN THE MAXIMUM
AMOUNT OF $84,977.00, PRESCRIBING THE FORM OF A CERTIFICATE
AND THE FORM OF ENDORSEMENT TO APPEAR THEREON: LEVYING A
CONTINUING DIRECT ANNUAL AD VALOREM TAX ON ALL TAXABLE
PROPERTY WITHIN THE LIMITS OF THE SAID CITY TO PAY THE
INTEREST THEREON AND TO CREATE A SINKING FUND FOR REDEMPTION
THEREOF, AND PROVIDING FOR THE ASSESSMENT AND COLLECTION OF
SUCH TAXES: AND ENACTING PROVISIONS INCIDENT AND RELATING
TO THE PURPOSE AND SUBJECT OF THIS ORDINANCE.
WHEREAS, heretofore on the 18th day of December
1979, the City Council of the City of Huntsville, Texas, by
Ordinance duly adopted and entered of record officially
ascertained, determined and confirmed its prior determina-
tion that it is necessary and in the best interest of the
City and its inhabitants that the City acquire certain
equipment to be used in the connection with the City of
Huntsville at a cost to the City in the amount of accepted
bids for each item of said equipment; and,
WHEREAS, in said Ordinance the City Council found that
all notices required by law have been issued and all things
requisite done in order to adopt an ordinance authorizing
the issuance of one (1) interest bearing certificate of
obligation of the City, amount not to exceed $84,977.00, for
such purposes upon terms approved by the City Council, said
Certificate is to bear interest at a rate of interest not to
exceed 6.74 % per annum and to mature not later than
December 31, 1984 , and to be issued upon the full
faith and credit of the City and payable from ad valorem
taxes;
WHEREAS, official notice of the City Council's in-
tentions aforementioned was duly given and the notices
requesting for the purchase of such equipment and the
publication thereof in the City's official newspaper, The
Huntsville Item, was made on November 27, 1979 and December
4, 1979, the notice for intention to issue said Certificate
of Obligation was likewise published in said paper on November
27, 1979 and December 4, 1979, all of which publications
were within the time and manner as required by law; and,
—1—
WHEREAS, it appears to the City Council that all
prerequisites to the valid authorization of the intended
Certificate of Obligation for its stated purposes, have been
accomplished in accordance with law, including the Certificates
of Obligation Act of 1971, and that this Council may therefore
proceed with the Ordinance authorizing the issuance of said
Certificate of Obligation;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF HUNTSVILLE, TEXAS:
Section 1. That one (1) interest bearing Certificate
of Obligation of the City of Huntsville to be known and
designated as "City of Huntsville, Texas, Equipment Acquisition
Certificate of Obligation" in the principal sum not to
exceed $84,977.00, shall be, and the same is hereby, author-
ized to be issued and the same is hereby issued, to -wit:
the acquisition of one (1) 1500 gallon per minute fire
control pumper truck for the use by the City of Huntsville,
and the Mayor and City Secretary shall have joint control of
such Certificate for the purpose of delivering same to the
owner in accordance with this Ordinance and they shall see
to the proper completion thereof in accordance herewith.
Section 2. That said Certificate shall be dated
and shall bear interest
as hereinafter set forth, shall be registered as hereinafter
set forth, and shall be in the following basic form, to -wit:
Amount $84,977.00
Dated: Register No. FY -79 -1
ISSUED:
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF WALKER
CITY OF HUNTSVILLE, TEXAS, EQUIPMENT ACQUISITION
CERTIFICATE OF OBLIGATION
The City of Huntsville, a Municipal Corporation of the
State of Texas, acknowledges itself indebted to and FOR
VALUE RECEIVED hereby promises to pay to the registered
owner hereof in installments and on the dates as below
indicated the total sum of
EIGHTY -FOUR THOUSAND NINE HUNDRED SEVENTY -SEVEN
DOLLARS and NO /100
-2-
($84,977.00), in lawful money of the United States of
America, with interest thereon from date of issue until paid
at the rate of 6.74 per cent per annum, payable on
and annually thereafter on the
day of of each and every year
as hereinafter provided until such aggregate sum is fully
paid.
BOTH PRINCIPAL AND INTEREST on this Certificate of
Obligation are hereby made payable in Huntsville, Walker
County, Texas, without exchange or collection charges to the
registed owner hereof, with such payments to be due on the
dates and in the amounts as follows:
DATE
December, 1980
December, 1981
December, 1982
December, 1983
December, 1984
-PRINCIPAL -INTEREST
$16,999.40 $ 5,728.80
$16,999.40 $ 4,583.04
$16,999.40 $ 3,437.29
$16,999.40 $ 2,291.52
$16,999.40 $ 1,145.76
This Certificate of Obligation is authorized by the City
Council of the City of Huntsville for the purpose of acquir-
ing equipment, and in accordance with an Ordinance duly
confirming the purchase of such equipment adopted and passed
by the City Council of the City of Huntsville on the 18th
day of December , 1979, and duly recorded in the
minutes of the said City Council.
The City reserves the right to prepay all or any part
of this Certificate at any time prior to the due date or
maturity thereof without premium or penalty of any kind.
It is hereby certified and recited that all acts,
conditions and things required to be done precedent to and
in the issuance of this Certificate of Obligation, to render
the same lawful and valid have been properly done, have
happened and have been performed in regular and due time,
form and manner as required by law; that due and proper
provision has been made for the levy of a direct and continu-
ing annual ad valorem tax against all taxable property
within the said City sufficient to pay the interest on this
Certificate of Obligation as due and to provide for the
payment of each Installment of principal as same matures;
that the City has received full value and consideration for
this Certificate of Obligation and that the total indebted-
ness of the City of Huntsville, including this Certificate
of Obligation, does not exceed any constitutional or statu-
tory limitation.
IN TESTIMONY WHEREOF, the City Council has caused the
seal of said City to be impressed hereon and this
-3-
Certificate of Obligation to be signed by the Mayor and
attested to by the City Secretary, the date of this Certificate
of Obligation being the day of
1979.
MORRIS I. WALLER, MAYOR
ATTEST:
RUTH DeSHAW, CITY SECRETARY
FULL CONSIDERATION therefor being hereby acknowledged,
this Certificate of Obligation was delivered to
the original holder, on this date,
to -wit: and by it hereby
transferred and assigned to
Section 3. While said Certificate of Obligation or
installment thereof are outstanding and unpaid, there shall
be annually levied, assessed and collected in due time, form
and manner a tax upon all of the taxable property in said
City sufficient to pay the current interest thereon and to
create a sinking fund sufficient to pay each installment of
principal as the same becomes due, or a sinking fund of 2 %,
whichever is greater; and in order to pay the interest on
said Certificate of Obligation for the first year and to
create a sinking fund with which to pay the principal as the
same becomes due, or a sinking fund of 2% whichever is
greater, there is hereby levied a sufficient tax on each ONE
HUNDRED DOLLARS valuation of taxable property in said City
for the current year and the same shall be assessed and col-
lected and applied to the purposes named; and while said
Certificate of Obligation is outstanding and unpaid, a tax
each year at a rate from year to year as will be ample and
sufficient to provide funds to pay the then current interest
on said Certificate of Obligation and to provide the necessary
sinking fund, full allowance being made for delinquencies
and costs of collection, shall be and is hereby levied for
each year, respectively, and said tax shall each year be
-4-
assessed and collected and applied to the payment of the
principal of and interest on said Certificate of Obligation,
to be kept separate and apart from all other funds of the
City. The City Council hereby declares and covenants that
it will provide and levy a tax legally and fully sufficient
for such Certificate of Obligation, it having been determined
that the existing and available taxing authority of the City
for such purposes is adequate to permit a legally sufficient
tax in consideration of all other outstanding obligations.
Section 4. The Mayor and City Secretary are hereby
empowered and directed to proceed with the delivery of said
Certificate of Obligation and the closing of said acquisition
at the earliest practicable date and are authorized to
complete the same in accordance with the terms hereof and to
do all things necessary or prerequisite thereto.
Section 5. The interest rate for the Certificate of
Obligation hereinabove authorized shall be as follows:
Certificate Register No. FY 79-1 $84,977.00
At the time said Certificate of Obligation is issued such
Certificate shall be registered and recorded by such regi-
ster number on the books of said City to the Registered
owner thereof.
Section 6. That the public importance of this measure
and the fact that it is to the best interest of the City to
acquire the equipment herein contemplated at the earliest
possible date, for the immediate preservation of the public
peace, property, health and safety of the City and its
citizens, creates an emergency and an imperative public
necessity, and this ordinance shall take effect and be in
force from and after its passage and approval, and it is so
ordained.
Section 7. Notwithstanding any other provisions in the
within Ordinance to the contrary as to the authorized
issuing date for such Certificate of Obligation, such
Certificate shall be dated and bear interest from date of
delivery and execution by the Mayor and City Secretary.
PASSED AND APPROVED on first reading by unanimous vote
of the City Council of the City of Huntsville, Texas, on
this the 18th day of December , 1979.
M RRIS 1. WAL ER, MAYOR
—5—
ATTESTT�)
, C TY SECRETARY
APP ED AS TO FORM:
-6-